Moneycontrol Top 5 Business News of the Day

Here is a wrap of the major business news of the day.

RBI Deputy Governor Viral Acharya resigns six months ahead of term end 

Reserve Bank of India’s (RBI) Deputy Governor Viral Acharya has quit six months before the scheduled end of his term. He is set to return to the New York University Stern School of Business (NYU Stern) in August as CV Starr Professor of Economics.

“A few weeks ago, Dr Acharya submitted a letter to the RBI which informed that due to unavoidable personal circumstances, he would be unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019,” the RBI wrote.

“Consequential action arising from his letter is under consideration of the Competent Authority,” the central bank added, without elaborating on whether it had accepted Acharya’s request to resign.

Acharya told Moneycontrol that he decided to leave six months early due to ‘unavoidable personal reasons’ and said, “For now I am sticking to my school teacher’s advice: When your work speaks for itself, do not interrupt.”

Emami Promoters sold 10% stake for Rs 1,230 crore 

Promoters of FMCG firm Emami have sold a 10 percent stake in the firm for Rs 1,230 crore to pare down debt via a block deal. In February they offloaded around 10 percent stake for Rs 1,600 crore. The stake sale occurred on the floor of the stock exchange to marquee institutional investors, Emami said in a statement.

According to the company, the promoters will use proceeds from the sale to reduce debt at the promoter level. The promoters holding in the firm has come down to 52.73 percent and they do not intend to sell a further stake.

DHFL’s lenders may meet in early July to work out a rescue package 

Lenders of crisis-hit NBFC Dewan Housing Finance Corporation (DHFL) will meet in July first week to work out a rescue package, Business Standard reported. The key points would include loan restructure to ensure repayment, working capital, new financial investor, and new management.

The banking system’s exposure to the housing finance company stands at over Rs 40,000 crore. Among these lenders are SBI, Axis Bank, HDFC Bank, ICICI Bank and Union Bank of India. Assessment of addressable levels of debt and ways to restructure the loans by extending their tenure and through fresh liquidity support are some major points of discussion with lenders, a senior banker involved in the transaction told the paper.

TCS hikes stake in TCS Japan to 66% 

India’s largest tech firm, Tata Consultancy Services (TCS) on June 24 announced hiking stake in TCS Japan its joint venture with Mitsubishi Corporation (MC), one of Japan’s largest integrated business enterprises, the company said in a statement to exchanges.

The move will result in TCS increasing stake to 66 percent, up from 51 percent, whereas MC will hold 34 percent. By increasing the equity stake, TCS aims to cater to the specific needs of Japanese corporations.

It recently chose Tokyo to set up its inaugural Pace Port, a creative hub to catalyse technology-led business innovation for Japanese customers.

Gold at a 6-year high; gained Rs 1,108 per 10 gram last week 

Gold prices traded higher by Rs 171 at Rs 34,338 per 10 gram in evening trade on June 24, continuing last week’s bullish trend. The yellow metal is trading above its six-year high on expectations of rate cuts by major central banks. Tensions in the Middle East and the US-Iran tussle have given the precious metal a safe-haven billing.

Gold touched an intraday high of Rs 34,370 and an intraday low of Rs 34,254. The yellow metal has gained Rs 1,108 in the past week.